“For years, Jim Cramer worked as a broker at Goldman Sachs, the prestigious investment firm on Wall Street. After stocks took a sharp nosedive in a post-election selloff Wednesday, he wondered what he might tell his clients, if he was still working as a broker,” Drew Sandholm reports for CNBC. “To start, the ‘Mad Money’ host would recommend taking profits in some of the biggest winners.”
“‘Needless to say, a stock like Apple is very right for this kind of call and I think it played out all day today because it makes so much sense to sell it now and take the capital gain as many have huge profits here,’ Cramer said. ‘These people are natural sellers and they don’t care that next year could be better, they want to take the gain this year to get the tax break, which is worth more than any capital appreciation they could hope for,’” Sandholm reports. “Cramer said, ‘I would then tell my clients that we will almost immediately start to put money to work in companies that will not be hurt by the fiscal cliff, ones that do fine in a slowdown that the cliff could bring.’”
Read more in the full article here.
Apple shares slide to 5-month low – November 7, 2012